2010 (1) TMI 409

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lance. However, the stock recorded of raw materials namely, Flexi PU foam sheets/blocks was 14,102.11 Kgs. whereas the actual stock was 16,421 Kg. thus excess stock of 2318.89 Kgs. valued at Rs. 2,78,267/- involving Cenvat credit of Rs. 45,859/-was found and the same was seized. Show cause notice dated 9-7-07 was issued and the original authority after holding that unaccounted raw materials were kept for the purpose of manufacture of excisable goods without bringing into account and for removing clandestinely, confiscated the excess found raw materials under Rule 25 of the Central Excise Rules, 2002 but allowed the same to be redeemed on payment of fine of Rs. 55,000/-. He also imposed penalty of Rs. 45,000/- on the respondent company and R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f credit on the said inputs, provisions related to confiscation of cenvated inputs under Cenvat Credit Rules also do not apply. At the most, it can be a case of irregular maintenance of raw material account. He seeks upholding the order of Commissioner (Appeals). He also submits that it has been held by the Tribunal in the case of J.J. Packagers (P) Ltd. reported in 2006 (196) E.L.T. 381 that Rule 25 of the Central Excise Rules could not be invoked in respect of raw materials. He also refers to the decision of the Tribunal in the case of CCE Indore v. Avanti LPG India Ltd. reported in 2004 (166) E.L.T. 186 (Tri.-Del.) wherein it has been held that raw material procured by a manufacturer cannot be treated as excisable goods in terms of Secti....